Don’t wait until a hurricane is imminent: Proactively prepare before the next hurricane to help keep your organization, employees and yourself safe. 

Prepare for a Property Loss

A large property loss can dramatically impact an organization’s productivity and profitability. It is important to review your property insurance policy prior to an event to ensure the coverage limits, terms and conditions are adequate for your locations and needs. If assistance is needed in understanding your insurance policy, please contact your USI representative or insurance carrier. USI’s property placement and analytics teams can assist you with: 

• Utilizing catastrophe modeling tools to evaluate property limits and identifying locations that pose the greatest risk of loss 

• Modeling for property acquisitions or divestitures

• Reviewing flood and storm surge limits

• Evaluating flood zones and their impact on coverage and deductibles fire scenarios

• Updating insured values at each location, as coverage restrictions for property insurance are now more common 

• Ensuring that sub-limits are appropriate for the risk 

• Funding forensic accounting and engineering services in the insurance program

• Calculating deductible scenarios and options for deductible buydowns

Given the uncertain nature of natural disasters, it is critically important to consider changes in exposures and limits sooner rather than later.

Establish an Agreeable Claims Service Team

The claims adjuster is your point of contact with the insurance carrier. It is important to understand that the adjuster represents the insurer. The adjuster investigates, negotiates and settles the claim. When applicable, an account adjuster should be assigned to the program at the time of policy inception. Having an account adjuster who has been pre-approved by both the insured and insurer often makes for a good working relationship and partnership during the adjustment process. Advance assignment allows the adjuster to be involved in pre-event planning, and helps them to understand the process and pre-designated flow of information and documentation. And of course, the claim process will be streamlined if the adjuster is familiar with the insured’s operations, eliminating the “learning curve” after the loss.

Select an Emergency Response Contractor

Following a major hurricane, businesses can typically expect longer recovery times and higher post-event inflation on contractors, restoration firms, and construction suppliers. We suggest identifying and working with your restoration project manager in advance of a loss, so they fully understand your operations and equipment needs. USI can connect companies of all sizes with emergency response firms that have national and international capabilities. An arrangement with one of these firms allows companies to receive a priority response in the wake of a major catastrophe and keeps all parties apprised of developments during the recovery period and claim process. Additionally, a written response plan, developed in advance of the loss, can be tailored to a company’s specific needs and exposure.

When a company selects an emergency response contractor in advance:

Whether the crisis is part of a major catastrophe or not, clients of an emergency response vendor receive a priority response from disaster recovery experts that have planned for the client’s specific exposures in advance. In the case of a hurricane or flood, for instance, a prompt response can help mitigate both the property damage (e.g., spread of mold, etc.) and business interruption.

• The contractor will work with the client to develop a comprehensive plan, tailored to the client’s specific exposures by evaluating the client’s needs and expectations prior to a loss.

• The contractor may have a pricing agreement with the client’s insurer(s), which can help avoid any post-loss scope, pricing, or invoicing disputes.

• The client also benefits from having a single point of contact with a national firm that has the necessary resources and technical expertise to respond in all areas of disaster recovery.

• The emergency response contractor can work within the claims process and facilitate recovery by leveraging critical relationships within the insurance industry.

• When it comes time to renew a policy, the client has an advantage, as advance planning can be very compelling and beneficial during renewal negotiations with underwriters.

Jessica has been practicing insurance for 18 years. She is a Partner and Vice President at USI Insurance - Community Associations Practice. She has built expertise pre-underwriting and placing insurance programs for Community Associations.  Jessica holds the Certified Insurance Counselor (CIC) professional designation, the Educated Business Partner Distinction (EBP) and the Community Insurance & Risk Management Specialist® (CIRMS) designation administered by CAI. She currently serves in the CAI national Board of Trustees and is the 2024 Business Partner Council Chair. She can be reached at [email protected] or at 703.340.0716.